luxury hybrid Karma, says it will probably receive its $529 million loan from the U.S. Department of Energy by the middle of March, according to Dow Jones VentureWire. This follows the company's announcement that it will shutter its research and development center in Michigan (PDF) -- bad news for a state that needs all of the automotive dollars it can cling to.
Even though the DOE gave the loan guarantee to Fisker back in September, the company had a hard time scraping together enough private investment to actually receive the money. Finally, in January it announced a $115.3 million round of equity (PDF) from A123Systems, Ace Investments and Kleiner Perkins Caufield & Byers.
The equity and loan (given through the DOE's Advanced Technology Vehicles Manufacturing program) will be used to launch both the Karma, which it plans to sell for $87,900 a piece, and jump-start progress on its more affordable family sedan, probably called the Nina. That latter vehicle, still in development is expected to sell for $47,400 before a $7,500 tax credit from the federal government. If the company can move fast enough, the Nina could be released in time to compete with Tesla Motors' similarly-positioned Model S.
Fisker already has 1,600 people on a waiting list for the Karma; each has paid a deposit of $5,000. But it has a long way to go before it sells the 11,000 cars it pledged to hit by the end of the third quarter in 2011. That was one of the major conditions of the DOE's loan, but it could be adjusted considering how long it took Fisker to raise the necessary capital.
Even though it's set for a big payday here in March, the company has still been tightening its belt. To do so, it's chosen to consolidate its operations in California, where it is headquartered in Irvine, by closing its 34,000 square-foot facility in Pontiac, Mich. It's a shame that it plans to go on a hiring binge once everything is solidly in California. The Detroit area could definitely use the employment.
While it will be taking some local investment and 30 jobs with it, the company will be maintaining partnerships with several automotive supply companies in the state -- including A123Systems, the battery maker it recently struck a deal with, which maintains an office in Ann Arbor, Mich. and has plans to build major manufacturing operations near Detroit.
The plan to make Irvine its hub excludes the Fisker plant being developed in an old General Motors factory in Wilmington, Del. In fact, that will be the primary manufacturing location for the cars rolled out under the banner of Project NINA once it comes to fruition.
Including the government loan, Fisker has raised $817 million to date, and is also backed by Palo Alto Investors, Qatar Investment Authority, and Eco-Drive Capital Partners.